IRS-ICE Data Sharing Agreement Raises Concerns Over Taxpayer Confidentiality and Voluntary Compliance
A memorandum of understanding between the Internal Revenue Service (IRS) and the Department of Homeland Security (DHS) in April 2025, which involved sharing taxpayer addresses with Immigration and Customs Enforcement (ICE), has sparked significant legal and compliance concerns. This agreement allowed ICE to request the last known addresses of over one million individuals believed to be unlawfully present. Before a federal district court halted the process, IRS employees provided 47,289 records to ICE. A federal district court judge, Colleen Kollar-Kotelly, found that the IRS violated Internal Revenue Code § 6103 approximately 42,695 times by sharing confidential taxpayer addresses. This ruling was upheld by a unanimous D.C. Circuit panel on September 8, stating that the policy "indisputably contravenes the requirements of Section 6103." Additionally, a Massachusetts federal judge has barred DHS and ICE from using or viewing any IRS taxpayer information obtained under this agreement. The core issue revolves...